Save money with lower initial interest rates using an Adjustable-Rate Mortgage (ARM). Ideal for borrowers seeking flexibility and reduced costs early in their loan, pay their principal faster, or for those who may only be in their home for just a few years.
Key Benefits of an ARM:
Low Initial Rates: Fixed for the first 5, 7, or 10 years.
Market-Based Adjustments: Rates adjust annually after the fixed period.
Rate Caps: Limits on annual and lifetime adjustments for stability.
How It Works:
Enjoy a fixed low rate during the initial term (e.g., 7 years for a 7/1 ARM).
Afterward, rates adjust annually based on market conditions.
An ARM can be a smart choice if you plan to move or refinance before the fixed period ends.
Calculate your monthly payment for fixed rate or adjustable rate loans.